Let’s be clear. Finding a good forex signals service is not easy. There are many signals provider who claim to be making more than 1000 pips per month. This can be a misleading statement. You don’t earn pips, you earn money. What is more important is the return that a signal service makes and what is the risk. What you should be looking for is a signals service that makes a return above 10% per month with a low risk of 1-3%.
In the last few years, the development of the trade copier software has made trading with signals much easier. You don’t need to enter the signals manually. The signal service provider team does all the technical analysis and the fundamental analysis and makes the trades. The trade copier software enters the signals automatically onto your account in real time. This saves a lot of time and can make life easy. Using a trade copier software means you don’t have to be near your computer all the time. If you can find a good signals service that keeps it’s words and does make a good return each and every month with a low risk, you have found a good passive income system.
This is how you should check a forex signals service. First check that it has got 60 days of no questions asked money back guarantee. If there is no money back guarantee, simple avoid that service. Once you have checked that then check the monthly performance of the signals posted on the site. Take a deep look at the month by month performance of the signals. Note down the drawdown per month. Once you have satisfied that this service is making 500-1000 pips per month with a low drawdown, you can think about testing it more on your demo account.
Always first test the signals on the demo account. Install the trade copier software that comes with that signals service. Choose a risk setting of 1-3%. Ideal is 1% but if you are a risk taker, you can increase the risk level to 3%. But don’t increase the level more than 3%. Trading is all about making a consistent return with a low risk.
It is a good idea to use a VPS. This helps and reduces the risk of your computer suffering a crash or the internet connection getting intermittent. Once you have installed the trade copier software and chosen the risk setting of 1-3%, let it run for a period of one month. At the end of the month, check the performance of the signals. If you made a return that was between 10-20% and the drawdown was less than 8%, you should further test it on a live account.
Testing the trade copier software on a live account is must. What works on the demo account may not work on the live account. Open a live account with a deposit of $200. Again choose the risk setting of 1-3% whatever suits you. Let the trade copier software copy the trades onto your live account. At the end of the month, if you are making between 10-20% return with a drawdown of less than 8%, you can think about increasing the deposit to $2K-5K.